Re:What Happens to Stocks and Cryptocurrencies When the Fed ...
by 55555 on Sunday May 09, 2021 @02:57AM
(#27093841)
Are you suggesting that buying a home right now is a good decision?
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Re:What Happens to Stocks and Cryptocurrencies When the Fed ...
by almost_usual on Sunday May 09, 2021 @03:12AM
(#27093906)
I’m suggesting buying a home at a record low interest rate is a good decision if you can afford it, especially with inflation on the horizon.
If you plan on staying there 10-15+ years and aren’t stretching financially I would buy.
Re:What Happens to Stocks and Cryptocurrencies When the Fed ...
by lottin on Sunday May 09, 2021 @03:33AM
(#27094012)
Inflation doesn't make one investment opportunity more attractive than another.
Re:What Happens to Stocks and Cryptocurrencies When the Fed ...
by wulfricin on Sunday May 09, 2021 @04:04AM
(#27094166)
inflation makes buying stuff on credit more attractive, especially when you can get it with really low interest rates which everyone expect to rise sooner than later
Re:What Happens to Stocks and Cryptocurrencies When the Fed ...
by lottin on Sunday May 09, 2021 @04:16AM
(#27094224)
Not really... if everyone expects inflation to rise, it will already be priced in.
Re:What Happens to Stocks and Cryptocurrencies When the Fed ...
by gassius on Sunday May 09, 2021 @06:43PM
(#27100517)
Priced in, in what? Assets prices? That would make for, inst-ainflation, I guess...
In any case, the thing is that cannot be priced into the rates of loans, because the same factor that will contribute to a rising inflation (increasing the monetary mass faster than real economic productivity) makes the loans very cheap by definition.
I for sure would get into all the long term fixed low rate debt I can handle to acquire assets that I think will not depreciate as fast
Re:What Happens to Stocks and Cryptocurrencies When the Fed ...
by unstatusthequo on Sunday May 09, 2021 @12:07PM
(#27097102)
Not everybody is clued in. Average random person on the street can’t even answer the question of how does money supply and inflation interact?
Re:What Happens to Stocks and Cryptocurrencies When the Fed ...
by gassius on Sunday May 09, 2021 @04:13AM
(#27094211)
Inflation does make long term debt with low, fixed interest rate very attractive
Re:What Happens to Stocks and Cryptocurrencies When the Fed ...
by lottin on Sunday May 09, 2021 @05:13AM
(#27094466)
Only in retrospect, if inflation was unexpected. But if it was unexpected you couldn't have taken advantage of it, because, by definition, you weren't expecting it.
Re:What Happens to Stocks and Cryptocurrencies When the Fed ...
by gassius on Sunday May 09, 2021 @06:35PM
(#27100461)
I don't see how the expectation change anything. Either inflation dilute the monetary value of your debt quicker than your asset depreciation or it doesn't.
So, any scenario were you bet (correctly) that inflation will rise at a higher rate than a fixed interest rate is very attractive